Wafer reclaimer forced to suspend shares

LONDON  Struggling silicon recycling venture Pure Wafer (Swansea, Wales) has warned that discussions with a potential buyer for the business have ended without success, and as a consequence, its shares have been suspended on London's Alternative Investment Market (AIM) section.

On the last day of last year, Pure Wafer said it received a bid approach from an un-named party as it revealed a pre-tax loss of £800,000 for the year to June 30, compared to a profit of £3.6 million the year before.

The company said at the time it was facing pricing pressures due to tough competition from new Taiwanese rivals and a slowdown in the industry.

In a statement to the Stock Exchange this week, Pure Wafer said: "The wafer reclaim business remains extremely problematic and the rapid downturn in trade across the world has made the challenges the company faces more significant.

"As previously notified, the board has been seeking further equity funding and has been negotiating with its bank and other funders, however a resolution has yet to be reached."

The compnay said it was "no longer in discussions which may lead an offer", and added its working capital and cash position remains under significant pressure.